Naturally, those with lower incomes will need to work longer.
Here’s how it breaks down (via MarketWatch):
- If you make around $11,700 dollars a year you have to work to age 84 to have a 50% chance of affording retirement.
- If you make between $11,700-$31,200 a year you have to work to age 76 to have a 50% chance affording retirement
- If you make between $31,200-$72,500 a year you have to work to age 72 to have a 50% chance of affording retirement.
- If you make $72,500 or more a year you have to work to age 65 to have a 50% chance of affording retirement.
This study does point out one bright spot for those working past 65 though. If you are putting your money into some kind of retirement fund, your chances of saving enough increase substantially.
From the report:
One of the factors that makes a major difference in the percentage of households satisfying the retirement income adequacy thresholds at any retirement age is whether the worker is still participating in a defined contribution plan after age 65. This factor results in at least a 10 percentage point difference in the majority of the retirement age/income combinations investigated.
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